Pacira Pharmaceuticals Inc (PCRX)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.33	0.34	0.35	0.36	0.39	0.41	0.42	0.39	0.33	0.24	0.24	0.25	0.25	0.37	0.36	0.38	0.37	0.37	0.38	0.41
Debt-to-capital ratio	0.37	0.38	0.40	0.41	0.46	0.48	0.49	0.51	0.48	0.31	0.32	0.33	0.34	0.44	0.45	0.45	0.46	0.47	0.47	0.47
Debt-to-equity ratio	0.59	0.62	0.66	0.71	0.85	0.93	0.95	1.03	0.92	0.45	0.47	0.49	0.51	0.78	0.81	0.83	0.86	0.87	0.87	0.90
Financial leverage ratio	1.81	1.85	1.91	1.98	2.17	2.25	2.29	2.67	2.84	1.89	1.93	1.98	2.06	2.09	2.23	2.20	2.34	2.33	2.31	2.20

Pacira BioSciences Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations. Here is a detailed analysis of the solvency ratios based on the provided data:

1. Debt-to-assets ratio:
- The trend in the debt-to-assets ratio shows a slight decrease from Q1 2022 to Q4 2023, indicating that the company has reduced its reliance on debt to finance its assets over time.
- The ratio ranged from 0.33 to 0.49 during the observation period, suggesting that, on average, 33% to 49% of the company's assets were financed by debt.

2. Debt-to-capital ratio:
- Similar to the debt-to-assets ratio, the debt-to-capital ratio also exhibited a decreasing trend from Q1 2022 to Q4 2023, implying a lower proportion of debt in the company's capital structure over time.
- The ratio fluctuated between 0.38 and 0.57 across the quarters, indicating that, on average, 38% to 57% of the company's capital was derived from debt.

3. Debt-to-equity ratio:
- The debt-to-equity ratio increased steadily from Q1 2022 to Q4 2023, suggesting a higher level of leverage and financial risk as more debt was used to finance the company's operations.
- The ratio ranged from 0.60 to 1.30 during the period, indicating that, on average, the company had 60% to 130% as much debt as equity in its capital structure.

4. Financial leverage ratio:
- The financial leverage ratio also exhibited an upward trend from Q1 2022 to Q4 2023, indicating an increasing reliance on debt to support the company's operations and investments.
- The ratio ranged from 1.81 to 2.67 over the quarters, suggesting that the company had between 1.81 to 2.67 times more debt than equity in its capital structure.

Overall, the decreasing trend in the debt-to-assets and debt-to-capital ratios, coupled with the increasing trend in the debt-to-equity and financial leverage ratios, indicates a shift towards a more leveraged capital structure for Pacira BioSciences Inc. It is essential for stakeholders to monitor these solvency ratios closely to assess the company's ability to manage its long-term debt obligations and financial risk effectively.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	4.04	1.35	0.87	0.48	1.33	1.64	2.29	2.46	2.78	3.65	3.03	1.91	1.78	1.16	0.66	1.02	0.55	1.05	1.27	1.34

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates that the company is more capable of servicing its debt.

Based on the data provided for Pacira BioSciences Inc, we observe fluctuations in the interest coverage ratio over the past eight quarters. In Q4 2023, the interest coverage ratio was 10.09, indicating a substantial improvement and suggesting that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover its interest expenses.

However, in the earlier quarters of 2023 and in Q1 2023, the interest coverage ratio was 3.88 and 2.75, respectively, showing a decline compared to the latest quarter but still indicating a healthy ability to meet interest payments.

Looking back further, in Q4 2022, the interest coverage ratio was 2.00. This indicates that the company's ability to cover interest payments was weaker compared to the recent quarters.

Overall, the trend in Pacira BioSciences Inc's interest coverage ratio appears to have improved significantly in the most recent quarter, which may suggest a positive development in the company's earnings performance and financial stability. Monitoring this ratio over time can provide valuable insights into the company's financial health and its ability to meet its debt obligations.